Long the server operating system of choice for corporations and universities, Unix has seen its lead in the server OS market slip in recent years. Both Windows and Linux have been eating away at Unix market share for a few years, and the growing popularity of those two operating systems has taken its toll on Unix sales. As of the end of 2005, Unix is no longer the #1 server OS in terms of sales, according to market research firm IDC's Worldwide Quarterly Server Tracker.
For the year 2005, Windows accounted for US$17.7 billion of worldwide server revenues, while Unix came in second place at US$17.5 billion. Linux came in third place with US$5.7 billion, but showed the strongest year-over-year growth with a 20.8 percent increase in revenues compared with 2004. Windows also grew, but at a slower pace, with 4.7 percent revenue growth year-over-year. The US$17.5 billion in revenues for Unix represented a 5.9 percent drop from 2004 figures.
Why is Unix getting hammered? There are a number of reasons. First would be the increasing maturity of both Windows and Linux. Unix has been around for around four decades by now, whereas Windows and Linux are comparative newcomers to the server world. However, the collaborative strength of the open source community and the financial might of Microsoft have been sufficient to spur development of their respective OSes by leaps and bounds.